USG Launches Senior Notes Offering

USG, a building products maker, said pre-market Monday it launched a private offering of $500 million of senior notes. The new notes will be the unsecured obligations of USG. USG’s obligations under the new notes will be guaranteed on a senior unsecured basis by certain of its domestic subsidiaries.

USG will use all or a portion of the net proceeds from the offering of new notes to buy back its outstanding 7.75% senior notes due 2018 that are tendered pursuant to the cash tender offer that USG commenced on Monday and to pay related costs and expenses.

USG also will use any remaining net proceeds from the offering of new notes and cash on hand to redeem any 2018 notes that remain outstanding after completion of the tender offer.

By Celina Yao